Things that can’t be bought with a credit card

We’ve all heard MasterCard’s slogan that there are some things money can’t buy and for everything else there’s MasterCard. That’s not quite true. There are a handful of things that a person cannot use a credit card to buy, though for some there are ways around it that they can use their credit card for. Here are some of the things that you cannot use a credit card to purchase.

Marijuana, which includes medical marijuana even in states where it is legalized, cannot be purchased with a credit card. Federal law prohibits the use of marijuana even for medical purposes and that is all credit card processors need to hear. Despite that 29 states (and DC) have legalized medical marijuana and 8 (with DC) have legalized recreational marijuana. American Express and Discover have announced they will not allow these purchases, MasterCard says it is waiting for instruction from the government regulators and Visa is not commenting. Since most banks do not provide services to cannabis growers and dispensers checks are also not accepted. Cash only. This will change as the federal government does not seem to be interested in fighting this out in court as well as in the court of public opinion. All it takes is time, after all, there was a time when you couldn’t buy alcohol with a credit card as well.

If you are looking at the red light district of the Internet you had better look at what is in your wallet. American Express and Discover prohibit its cards from being used to purchase online pornography in an attempt to fight child pornography and since most sites are not secure. Visa and MasterCard however allow their cards to be used.

Heading to the casino to try Lady Luck? Bring cash since gamblers can’t buy chips with plastic but you can get a cash advance from a casino ATM (for a price). Credit card companies say they don’t want to make it easier to rack up debt from gambling and to prevent credit card fraud for that purpose. MasterCard however does allow their cards to be used for intrastate online gambling (ie a resident of a state where online gambling is legal can use their MasterCard to pay for it).

Dream of hitting it big in the lottery? Use cash. Now this is determined by the state government and is prohibited in some states to prevent people going into debt buying lottery tickets as well as to fight fraud. American Express and Discover will not allow the purchase of lottery tickets even where the state allows it. Even where it is legal some retailers do not take a card since the interchange fee cuts into their commission.

Bought a house? Don’t expect to pay off your mortgage with a credit card! Mortgage lenders do not want you to pay your debt obligations with more debt. Not only is it risky but federal regulations prohibit that. The banks also do not want to have to pay the interchange fee on the payment, especially to another bank. This also applies to auto loans as well.

A college education can be expensive. Some schools allow you to pay your loans with a credit card but your card issuer will charge an extra fee. Most credit cards do not allow rewards points to accumulate by doing this so there is little to be gained. Student loans cannot be paid off using a credit card unless you have defaulted on a federal loan. You can get a cash advance from your credit card to use for it though.

Ever been arrested? Your mugshot is public record and remains on file for potentially the rest of your life. Some people do want to move on with life and do not want their mugshot available to the world, especially if the charges were dropped or they were acquitted. Some less-than-reputable services say they can get your mugshot removed but don’t expect to pay for it with a credit card. All of the major issuers forbid it.